This quiz works best with JavaScript enabled. Home > Public Finance > Public Finance – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All are common characteristics of developing economies, except: A) Low level of income and consumption. B) Poor quality of life. C) Basic needs of all people are met. D) High unemployment and poverty. Show Answer Correct Answer: C) Basic needs of all people are met. 2. Choose correct option! A) Personal Income Tax:Indirect Tax Paid By Individual. B) Corporate tax:direct Tax Paid By Corporate. C) Direct Tax:Transferrable tax. D) Indirect Tax:Non Transferrable tax. Show Answer Correct Answer: B) Corporate tax:direct Tax Paid By Corporate. 3. The definition of Scarcity is ..... A) An unlimited amount of resources to meet limited wants and needs. B) A limited amount of resources to meet unlimited wants and needs. C) When people use time and energy to create events. D) A city where individuals commit themselves to unlimited wants and needs. Show Answer Correct Answer: B) A limited amount of resources to meet unlimited wants and needs. 4. It is the final step of the budget execution phase. A) Disbursement. B) Cash Allocation. C) Incurring Obligations. D) Allotment Release. Show Answer Correct Answer: A) Disbursement. 5. If your bank account is overdrawn, you are in the ..... A) Black. B) Blue. C) Red. D) White. Show Answer Correct Answer: C) Red. 6. Which of the following refers to a tax in which the taxpayer does not bear all or most of the burden of that tax? Taxpayers can pass on all or most of their tax burden to others. A) Specific product tax. B) Direct tax. C) Indirect taxes. D) D. Consumer tax. Show Answer Correct Answer: C) Indirect taxes. 7. ..... are the expenditure of the government for the maintenance of existing infrastructures, to maintain law and order, defense, etc ..... A) Current expenditure. B) Capital expenditure. C) Public revenue. D) All of the above. Show Answer Correct Answer: A) Current expenditure. 8. Which of the following is an example of government expenditure? A) Construction of a new highway. B) Purchase of a new car by an individual. C) Payment of a salary to an employee by a private company. D) All of the above. Show Answer Correct Answer: A) Construction of a new highway. 9. What budget policy does Keynesian propose to use when unemployment occurs? A) Budget deficit. B) Budget surplus. C) Balanced budget. D) Balanced budget. Show Answer Correct Answer: A) Budget deficit. 10. Which school of thought firmly believes in market mechanisms? A) Classical school. B) Neoclassical school. C) Keynesian School. D) Marxist office. Show Answer Correct Answer: A) Classical school. 11. 3-public economics study all answers except A) Taxation. B) Public goods. C) Public education. D) Private pensation. Show Answer Correct Answer: D) Private pensation. 12. What is the structure of economic policy relationships? A) State mechanisms in the economy-goals-tools. B) Tools-Goals-State mechanisms in the economy. C) State mechanisms in the economy-tools-goals. D) Goals-Tools-State mechanisms in the economy. Show Answer Correct Answer: C) State mechanisms in the economy-tools-goals. 13. The concept of ..... is much appreciated by modern economists, as it relates to a change in the tax system. A) Specific tax incidence. B) Differential incidence. C) Formal tax incidence. D) Effective tax incidence. Show Answer Correct Answer: B) Differential incidence. 14. If one person use of it diminish other's use what kind of good is that? A) EXCLUDABLE. B) RIVAL IN CONSUMPTION. C) NATURAL GOODS. D) COMMON GOODS. Show Answer Correct Answer: B) RIVAL IN CONSUMPTION. 15. In 2003, President Bush chose to ..... A) Raise taxes. B) Cut taxes. C) Increase spending. D) None of above. Show Answer Correct Answer: B) Cut taxes. 16. Federal tax revenues (Federal government is bringing in money) ..... which are correct revenues? A) All are correct. B) Personal income tax. C) Payroll taxes (Federal FICA deducted from your check). D) Corporate income taxes. Show Answer Correct Answer: A) All are correct. 17. A proportional tax sets the same tax for everyone. A) True. B) False. Show Answer Correct Answer: B) False. 18. Which of the following is an example of a social welfare program? A) A tax break for corporations. B) A universal basic income program. C) A reduction in government spending on education. D) A decrease in government subsidies for farmers. Show Answer Correct Answer: B) A universal basic income program. 19. Which is the agency responsible for overseeing monetary policy? A) Main commercial banks. B) Central bank. C) Fiscal Policy Office. D) Ministry of Finance. Show Answer Correct Answer: B) Central bank. 20. A document issued by a bank that lists the amounts of money taken out of and paid into the bank account A) A savings account. B) Accounts. C) A bank statement. D) A current account. Show Answer Correct Answer: C) A bank statement. ← PreviousNext →Related QuizzesPublic Finance Quiz 1Public Finance Quiz 3Public Finance Quiz 4Public Finance Quiz 5Public Finance Quiz 6Public Finance Quiz 7Public Finance Quiz 8Public Finance Quiz 9Public Finance Quiz 10Public Finance Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books